Federal Reserve Bank of Cleveland
Credit default swaps and their market function
Credit derivative instruments allow default risk to be segregated from debt of all kinds. They have granted investors the ability to hedge their portfolios and provided numerous institutions with a new source of income. However, the market for credit default swaps is neither transparent nor regulated, perhaps undermining the stability of the financial system it has helped innovate.
Cite this item
Kent Cherny & Ben R. Craig, "Credit default swaps and their market function"
, Federal Reserve Bank of Cleveland, Economic Commentary, issue Jul, 2009.
Keywords: Credit derivatives ; Swaps (Finance)
This item with handle RePEc:fip:fedcec:y:2009:i:jul
is also listed on EconPapers
For corrections, contact 4D Library ()